Apparently, while beached at Folsom Lake, my prop hit 1 too many times. All the traffic slammed it repeatedly into the sand. "They" say that it's a problem w/ the transon seal. Do I really have to get the engine pulled out to fix this? Not to mention, an estimate of 3 weeks & 1200 bucks! I'm screwed...right?}

yes to fix a transom leak on an inboard/outboard you have to pull the motor, if its coming from the the bolts running through the outdrive. check the bead of silicone running the perimeter of the housing around the outdrive if its popped up anywhere that means its shifted and your leaks coming from there or the bolts running through the transom itself.